Daniel Pavilonis, senior commodities broker, RJO Futures said the strength in gold Friday suggested it was trading as a risk asset, rather than a safe haven, given it was rallying along with equities again. “The risk trade is back on. And with the technical side looking good, you could see some fund buying here,” he said.
Pavilonis said gold’s technical chart patterns suggest a possible rally. “It looks like technically that it has been building a bottom for the past 11 months, a triangle pattern, as it stays over $1,600 (generally),” he said.
Gold prices could rise into next week, with the market likely to test resistance at $1,630, he said, a level it has not been able to take out. Beyond that is resistance at the top of the current range at $1,640. If it can move above there “then it’s off to the races,” Pavilonis said.
To read the full article with Dan comments, please go to Kitco.com
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Daniel Pavilonis
Senior Commodities Broker
Daniel started his career as a broker with Lind-Waldock in 2007. He is well diversified in the markets with the indexes and currencies amongst his favorites. Daniel can often be found quoted in industry sources, such as Bloomberg, Dow Jones Newswires, WSJ and Futures magazine..... Read More
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